Högskolan i Skövde

This study presents a holistic view of which factors small and medium-sized enterprises (SMEs) have to consider, in moving their customer order decoupling point (CODP) further from the customer, thereby becoming more customized. The study also investigate whether SMEs and larger enterprises differ in the strategic questions relating to what influences an enterprise to become more customized, which prerequisites are required and which problems enterprises should anticipate and prepare for. These questions are important, given that strategic change is challenging, and can take considerable time to accomplish; it therefore needs to be based on the right decisions. This study is motivated by the fact that the markets SMEs are selling to tend to become more and more complex and harder to anticipate. Increased globalisation and use of IT and ICT have lead to greater uncertainty in customer demand. At the same time customers have ever more demanding needs and specifications; if these are not met, they will go elsewhere rather than reducing or adapting them. This complexity requires a more customized production and is a way to gain commercial advantages.    

Customised production includes many benefits such as reduced uncertainty, by producing totally customized products less capital bound is tied up. But meanwhile many challenges such as reduced production efficiency, furthermore flexibility must be increased and higher demands on communications and IT systems are often necessary. The study starts with a wide and thorough theoretical overhaul around the movement of the CODP, but also addresses other parts of the organization to get the all-important big picture. This theoretical work is leading to a work-model which is used in six interviews within SMEs. In order to get a thorough picture, the enterprises that take part in the study are from different line of business and have from 18 to 235 employees. During these interviews, conducted on a single occasion per company, the model and related questions are discussed. Thereby an analysis of the interviews and the theory is done, with the model as the starting-point.

The result of this study is a basic model, which SMEs can use as an analytical tool, and a checklist, to facilitate a move towards a make-to-order manufacturing strategy, thereby gaining more flexibility. The study provides a basic generic framework which can be adapted and tailored by the company in question to see which parts are relevant to specific circumstances.